Abstract
We revisit the impact of legal origin on financial development using propensity score matching and a new financial development index on a sample of 178 countries over 1980–2016. German civil law countries are found to have the strongest positive impact on financial development. English common law countries follow. French and Scandinavian civil law countries have a negative impact on financial development while Socialist legal origin records no significant effect. When decomposing the measure of financial development into financial markets and financial institutions' development, we find that German civil law promotes both while English common law promotes only financial institutions development.
| Original language | English |
|---|---|
| Article number | IJFE2167 |
| Pages (from-to) | 535-553 |
| Number of pages | 19 |
| Journal | International Journal of Finance and Economics |
| Volume | 27 |
| Issue number | 1 |
| Early online date | 9 Oct 2020 |
| DOIs | |
| Publication status | E-pub ahead of print - 9 Oct 2020 |
Keywords
- financial development
- financial institutions
- financial markets
- legal origin
- propensity score matching
ASJC Scopus subject areas
- Accounting
- Finance
- Economics and Econometrics
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Glauco De Vita
- Research Centre for Business in Society - Professor in Business and Management
Person: Teaching and Research